Ludgate Environmental Fund (LEF) has invested £3m in Hydrodec Group as part of overall funding of £13.8m.
The funding has been completed through the placing of fixed rate unsecured convertible loan notes.
Hydrodec’s technology is a patented sustainable oil refining process that takes existing spent oil as feedstock to produce new speciality oils, creating a green cycle. The process produces no emissions as it is a closed loop and it can return ‘as good as new’ oil to utilities and transformer manufacturers.
Nick Pople, the fund’s investment advisor, said: ‘We have been following the commercial development of Hydrodec in Australia for some time and see the US – currently the world’s largest market for transformer oils – as a key stage for the international expansion of the company over the next few years.’
LEF led this funding round and was joined by a number of other co-investors who are existing shareholders in the fund. Following this first investment approximately 11.2 per cent of the fund is now invested.
The loan notes have a five year term and a conversion price of 19p. They will pay interest semi-annually in arrears at a rate of eight per cent per annum.